The Nigerian National Petroleum Company Limited (NNPCL) has revealed its position as a part-owner of the Dangote Refinery, affirming its commitment to the landmark project.
NNPCL’s Group Chief Executive Officer, Mele Kyari, announced this at a conference organized by the Nigerian Association of Petroleum Explorationists in Lagos on Monday.
Kyari emphasized that NNPCL takes pride in its role, dismissing accusations that the corporation is working against the refinery’s success.
“We are very proud part-owners of Dangote refinery, no doubt about it,” Kyari declared, responding directly to recent criticism.
The refinery, owned by Africa’s richest man, Aliko Dangote, recently began operations, raising hopes of a major reduction in Nigeria’s fuel import dependency.
However, Dangote recently alleged that forces within the oil sector, including NNPCL, were attempting to sabotage the refinery’s progress.
Kyari denied these allegations, insisting that NNPCL’s involvement is grounded in supporting Nigeria’s economic and energy security.
“The point is very far from it,” Kyari said, refuting Dangote’s claims. “I’m going to speak to it straight. We saw an opportunity that there is a clear market for at least 300,000 barrels of our production.”
NNPCL’s partnership with Dangote’s refinery is not just about ownership; it is also about ensuring a stable market for Nigeria’s crude oil, Kyari explained.
He stated that with oil discoveries emerging worldwide, competition is rising, and the NNPCL recognizes the value of securing domestic refining capacity.
“We know that as time moves on, people will start struggling to find markets for their production,” he said, pointing to global shifts in oil supply.
“It will happen; it’s already happening. Oil is found, as you know, in many unexpected locations across the world, and people have choices.”
NNPCL’s decision to invest in Dangote’s refinery, he noted, was a strategic business choice aimed at securing a consistent market for Nigeria’s crude production.
This stake is part of NNPCL’s broader plan to boost domestic refining and reduce dependency on imported fuel, which has long been a costly challenge for Nigeria.
Kyari’s statements come at a crucial moment for Nigeria’s oil industry, as the nation seeks to cut down on fuel imports and strengthen its local refining capacity.
For decades, Nigeria has heavily relied on importing refined petroleum products due to limited refining capability, leading to billions spent annually on fuel imports.
The Dangote Refinery, capable of processing 650,000 barrels of oil daily, is a key element in Nigeria’s efforts to change this narrative.
By partnering with Dangote, NNPCL hopes to achieve not only energy security but also economic benefits that include creating jobs and stabilizing fuel prices.
Kyari highlighted that NNPCL’s engagement is not limited to the Dangote Refinery alone.
The company is open to supporting other domestic refineries, seeing them as crucial players in achieving a self-sustaining oil and gas sector in Nigeria.
“We saw an opportunity to log supply to the domestic refinery, not just Dangote but any other refinery that operates in the country,” Kyari said.
The NNPCL’s ownership in the Dangote Refinery represents a long-term vision to secure Nigeria’s place in an evolving energy landscape.
